In preparation to start drilling operations at its block offshore the Republic of Guinea, Hyperdynamics entered into a $4.5m master service agreement (MSA) with Schlumberger Service Company to provide drilling services for the Fatala-1 deepwater exploration well that is planned for the second quarter of 2017, informed Offshore Engineer.
The MSA between Schlumberger and Hyperdynamics subsidiary, SCS Corporation, will see Schlumberger as the primary provider of services to drill the Fatala-1 well, Offshore Energy Today reported. Schlumberger will provide wire-line logging, measurement while drilling, logging while drilling and similar downhole drilling services. The service further extend to drilling fluids and solids control services, downhole cementing services, mud-logging services, drilling bits and reamers, as well as contingency fishing equipment and services.
Moreover, Hyperdynamics said it also signed a letter of intent (LOI) to farm out a 20% interest in the Guinea concession to South Atlantic Petroleum Ltd. (SAPETRO). Under the LOI, SAPETRO will pay for 40% of the Fatala-1 well up to a total well cost of $50m and a proportional 20% share of any cost above that amount. Furthermore, Netherland Sewell & Associates Incorporation (NSAI), a provider of reserve audits and resource assessments, recently upgraded its opinion of the probability of success for the Fatala 1 prospect from 25% to 31%, saying the well represented “low-risk exploration.”